TOP 100+ Business Environment MCQ for NET Exam and Answers with FREE PDF

Business Environment And International Business MCQ For UGC NET: These Business Environment MCQ for NET Exam and Answers with FREE PDFs are composed by our Livemcqs team. These MCQs on Business Environment are most important for your all competitive exams BBA and MBA exams. The business environment is different from other business subjects in the sense that it does not actually have a dedicated subject. It incorporates things about the economy, technology, and demographics of the country. As with any other subjects, MCQs are important for the business environment as well so, you must practice them to gain proficiency and build confidence.

Business Environment MCQ for NET Exam and Answers with FREE PDF

A Brief Details About Business Environment MCQ

Quiz TopicBusiness Environment
Important forNET Exam
Number of Questions25
Question TypeMCQ
FormatText & PDF
PDF Size1 MB
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Business Environment And International Business MCQ For UGC NET

1. Which sector got priority in the 1st five-year plan?

(a) Agriculture

(b) Industrial

(c) Infrastructure

(d) Communication

Answer: Agriculture

Explanation: In order of priority, the First Plan placed agriculture and irrigation first, transport and communications second, social services third, then power, and finally industry.


2. The low-income economies are sometimes referred to as ———-

(a) First world

(b) Second world

(c) Third world

(d) None of these

Answer: Third world

Explanation: The low-income economies are sometimes referred to as the Third world. Low-income and middle-income economies are sometimes referred to as developing economies.


3. Which is the Govt.’s strategy in respect of public expenditure and revenue which have a significant impact on business.

(a) Monetary policy

(b) Fiscal Policy

(c) Trade policy

(d) Foreign exchange policy

Answer: Fiscal Policy

Explanation: Fiscal Policy is the Govt.’s strategy in respect of public expenditure and revenue which have a significant impact on business. In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.


4. In which year the constitution of India was amended to add, among other things, that India should be a socialist state?

(a) 1954

(b) 1976

(c) 1980

(d) 1985

Answer: 1976

Explanation: In 1976 the constitution of India was amended to add, among other things, that India should be a socialist state.


5. The method used for transferring complex technology is ———–

(a) Turnkey contracts

(b) Licensing agreements

(c)Training of experts

(d) None of these

Answer: Turnkey contracts

Explanation: The method used for transferring complex technology is Turnkey contracts. A Turnkey Contract is one under which the contractor is responsible for both the design and construction of a facility. The basic concept is that in a Turnkey Contract the contractor shall provide the works ready for use at the agreed price and by a fixed date.


6. In which year the Adrian Cadbury Committee on corporate governance was appointed?

(a) 1991

(b) 1996

(c) 1980

(d) 2000

Answer: 1991

Explanation: The Corporate Governance Committee was set up in May 1991 by the Financial Reporting Council, the Stock Exchange, and the accountancy profession in response to continuing concern about standards of financial reporting and accountability.


7. CII stands for

(a)Confederation of Indian Industries

(b) Condition of Indian Industries

(c) Classes of Indian Industries

(d) Civilians of Indian Industries

Answer: Confederation of Indian Industries

Explanation: CII stands for Confederation of Indian Industry. It is a not-for-profit and non-government organization that is established to create a conducive environment for the development of industry and civil society in India through advisory and consultative services.


8. According to Birla Committee on Corporate governance, the nonexecutive directors should comprise at least ——– percent of the Board, if one of them is the chairman

(a) 30%

(b) 20

(c) 10

(d) 70

Answer: 30%

Explanation: According to Birla Committee on Corporate governance, the non-executive directors should comprise at least 30% percent of the Board, if one of them is the chairman.


9. In which year Govt. of India appointed the Rangarajan Committee on disinvestment in PSEs

(a) 1990

(b) 1991

(c) 1993

(d) 1996

Answer: 1993

Explanation: The Rangarajan Committee on the ‘Disinvestment of shares in PSEs’ (April 1993) emphasized the need for substantial disinvestments. The major recommendations of the committee were: It stated that the percentage of the equity to be divested could be up to 49% for industries explicitly reserved for the public sector.


10. The Govt. of India constituted a Public sector Disinvestment commission on——

(a) 15 March 1991

(b) 23 Aug 1993

(c) 23 Sept 1993

(d) 06 May 1994

Answer: 23 Aug 1993

Explanation: The Govt. of India constituted a Public sector Disinvestment commission on 23 Aug 1993. The disinvestment commission defines strategic sale as the sale of a substantial portion of the Government shareholding of a central public sector enterprise (CPSE) of up to 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.


11. Which Act was replaced with the introduction of the Competition Act 2002?

(a) FERA

(b) MRTP

(c) POTA

(d) None of these

Answer: MRTP

Explanation: The Monopolies and Restrictive Trade Practices Act (MRTP) was replaced with the introduction of the Competition Act 2002.


12. Competition Act was enacted in the year——-

(a) June 2002

(b) Dec. 2002

(c) January 1999

(d) None of these

Answer: Dec. 2002

Explanation: Competition Act was enacted in 2002. The main objectives of the Competition Act, of 2002 are: to provide the framework for the establishment of the Competition Commission. to prevent monopolies, and to promote competition in the market. to protect the freedom of trade for the participating individuals and entities in the market.


13. Which committee recommended the enactment of the Competition Act

(a) High-level Committee on competition policy and Law

(b) A Committee on Law and Order

(c) A Central Committee for Research and Policy

(d) None of these.

Answer: High-level Committee on competition policy and Law

Explanation: High-level Committee on competition policy and Law recommended the enactment of the Competition Act. The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, of 1969.


14. Who is concerned with the auditing of the receipts and expenditures of the State and Central Govt.

(a) Accountant General

(b) Comptroller and Auditor General

(c) Reserve Bank of India

(d) None of the above.

Answer: Comptroller and Auditor General

Explanation: Comptroller and Auditor General are concerned with auditing the receipts and expenditures of the State and Central Govt.


15. Which policy is concerned with raising revenue through taxation and deciding on the level and Pattern of expenditure?

(a) Monetary policy

(b) Fiscal Policy

(c) Cash policy

(d) None of these

Answer: Fiscal Policy

Explanation: Fiscal Policy is concerned with raising revenue through taxation and deciding on the level and pattern of expenditure. In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.


16. Who is responsible for presenting the Union Budget before the Parliament?

(a) Prime Minister

(b) Finance Minister

(c) RBI Governor

(d) None of these

Answer: Finance Minister

Explanation: Finance Minister is responsible for presenting the Union Budget before the Parliament. The Union Budget of India also referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India.


17. The Planning commission was set up in India in ——–

(a) 1950

(b) 1951

(c) 1947

(d) 1952

Answer: 1951

Explanation: The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The first Five-year Plan was launched in 1951.


18. Who is the President of the National Development Council?

(a) Finance Minister

(b) Prime Minister

(c) Monteng sing Aluvalia

(d) None

Answer: Prime Minister

Explanation: The National Development Council is presided over by the Prime Minister of India and includes all Union Ministers, Chief Ministers of all the States and Administrators of Union Territories, and Members of the NITI Aayog.


19. From which five-year plan ‘growth with social justice’ has received added emphasis?

(a) 5th

(b) 4th

(c) 3rd

(d) 6th

Answer: 5th

Explanation: From the 5th five-year plan ‘growth with social justice’ has received added emphasis. The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice. The plan also focused on self-reliance in agricultural production and defense.


20. GAAT was born in the year————–

(a) 1948

(b) 1945

(c) 1947

(d) 1950

Answer: 1948

Explanation: General Agreement on Tariffs and Trade (GAAT) was born in the year 1948. The GAAT is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.


21. What was the predecessor of WTO?

(a) GAAT

(b) IMF

(c) ADB

(d) None of the above

Answer: GAAT

Explanation: Over the past 60 years, the WTO, which was established in 1995, and its predecessor organization the GATT have helped to create a strong and prosperous international trading system, thereby contributing to unprecedented global economic growth.


22. In which year WTO was formulated?

(a) 1995

(b) 1948

(c) 1991

(d) 1988

Answer: 1995

Explanation: The WTO began life on 1 January 1995, but its trading system is half a century older. Since 1948, the General Agreement on Tariffs and Trade (GATT) had provided the rules for the system. (The second WTO ministerial meeting, held in Geneva in May 1998, included a celebration of the 50th anniversary of the system.)


23. FEMA was passed in the year —

(a) 1999

(b) 1989

(c) 2000

(d) 1997

Answer: 1999

Explanation: The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for the earlier Foreign Exchange Regulation Act (FERA). FEMA became an act on the 1st day of June 2000.


24. The quota system was first introduced in the year

(a) 1955

(b) 1960

(c) 1949

(d) 1952

Answer: 1955

Explanation: The quota system was first introduced in 1955. A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.


25. PLR stands for

(a) Prime ministers Land Recovery

(b) Prime Lending Rate

(c) Price Leverage Rate

(d) None of these

Answer: Prime Lending Rate

Explanation: PLR stands for Private Label Rights. PLR is content that can be edited, modified, and shared by you as your own. Some people have created great content and provided you with the right to use it as you wish.


Business Environment And International Business MCQ For UGC NET: Importance

Business Environment and International Business MCQs For UGC NET Exam have been added to the list of study material. The series is helpful for aspirants who are preparing for the UGC NET exam. This topic is important to be included in the syllabus because it covers all the areas related to the business environment, which includes factors affecting international business and international business competition. The objective of this article is to provide you with some important and relevant information regarding the business environment and international business.

Business Environment And International Business MCQ For UGC NET: Importance

The business environment is an important term used in international business and economic law. It means the conditions within which businesses operate. The business environment includes the external factors that affect the conduct of business operations, such as political and social environment, technological developments, etc.

The main purpose of a business environment is to determine whether there are any barriers that hinder or facilitate the process of doing business. The international business environment refers to all external factors that affect an organization’s ability to compete in global markets.

It helps us understand how various factors in a country’s political system, economic structure, and legal framework can affect an organization’s ability to do business there.

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FAQ and Answers on Business Environment

What is the business environment Mcq?

Answer: Business Environment is the sum total of all the internal and external factors that creates an impact on the business. The environment in which a business operates is made up of both the natural and social conditions that affect its operations. Environmental factors are often beyond a company’s control.

Business environment is dynamic, so it must be monitored continuously and changes should be responded to promptly. It can be assessed by examining relevant information such as economic indicators and government policies, as well as by conducting surveys with customers or suppliers.

What are the elements of business environment Mcq?

Answer: Steeple factors are the elements of the business environment that influence or determine the success or failure of a business. The three main categories of steeple factors are:

Economic Environment: This is made up of the macroeconomic variables – such as unemployment, inflation, interest rates, and money supply – that influence a company’s ability to generate revenue and make a profit.

Political Environment: This refers to the laws and regulations that affect companies, as well as political events such as wars or elections that can create uncertainty in a company’s markets.

Social Environment: This includes social trends such as changes in consumer preferences and lifestyles, demographic shifts (such as population aging), and health concerns (such as obesity).

What is external business environment?

The external business environment consists of economic, political and legal, demographic, social, competitive, global, and technological sectors. Managers must understand how the environment is changing and the impact of those changes on the business.

The external business environment is constantly changing. The threat of natural disasters such as hurricanes or earthquakes can significantly affect your business operations. The political climate can change overnight with new legislation or policies affecting your business. Economic downturns can result in a decrease in sales. These factors can have a significant impact on your business operations.

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